What is suitability of DEPARTMENTAL UNDERTAKING …

Departmental organisation does not fulfill the requirements of autonomy, flex­ibility and initiative that are so essential for a successful business undertaking. However, it is very suitable in the following cases.

1. Where utmost secrecy is required, e.g., defence production and atomic energy.

2. Where absolute government control over strategic industries is necessary, e.g., broadcast­ing, telecommunications, public utilities, etc

. 3. Where economic control is necessary, e.g. state trading in essential commodities and rationing

; 4. Where the private sector is unable to enter due to huge capital investment, e.g., ship­building, aircraft manufacture, iron and steel, etc; and

5. Where the undertaking is to be used as a source of revenue, e.g., Indian Railways. 10.8 Public Corporations